1. Most of the biofuels are derived from biomass, which is renewable, low cost and locally available, entailing little or no commitment of foreign exchange.
2. They lead to relatively low CO2 omission than fossil fuels.
3. They do not contribute to environmental pollution due to gases like 5°2, etc.
4. The substrate is often a waste, including municiple waste. Use of such materials for biofuel production helps in cleaning up the environment.